The proper procedure for computing the amortization of a premium using the effective interest method includes multiplying

A) the market rate of interest times the face value of the bonds
B) the market rate of interest times the carrying value of the bonds
C) the stated rate of interest times the face value of the bonds
D) the stated rate of interest times the carrying value of the bonds

The effective interest method of amortization involves calculating interest expense based on the carrying value of the bonds, not the face value. Therefore, choice B is correct, as it multiplies the market rate of interest by the carrying value of the bonds. Choice A is incorrect because it uses the face value of the bonds instead of the carrying value. Choice C is incorrect because it uses the stated rate of interest instead of the market rate of interest, which is used in the effective interest method. Choice D is incorrect because it uses the stated rate of interest times the carrying value of the bonds, which does not properly reflect the changing interest expense over time.